.July 23, 2024 08:39:00 AM

Citi analysts upgraded Coinbase (NASDAQ:COIN) to a Buy/High Risk rating due to recent shifts in the U.S. political and legal landscape that could reduce regulatory risks. The Supreme Court’s decision to overturn the Chevron precedent is seen as a positive development for the cryptocurrency industry.

The Supreme Court’s decision could lead to increased judicial scrutiny of the SEC’s enforcement strategy, potentially benefiting Coinbase. Crypto defendants may invoke the Major Questions Doctrine, prompting a closer examination of the SEC’s regulatory approach.

Coinbase’s stock has surged 52% YTD, outperforming the overall cryptocurrency market’s 45% growth. Analysts believe a more favorable regulatory environment could attract institutional capital and foster collaboration between crypto-native and traditional financial sectors.